Twitter Squeezes Banks on IPO

Microblogging Service Near Completion of $1 Billion Credit Line

Twitter Inc. is parlaying its surging popularity and the intense competition among banks for Internet deals to squeeze unusually favorable terms from the firms that will take it public.

The fees banks are set to collect for selling the shares—at 3.25% of the money raised, said people familiar with the deal—would be the lowest percentage paid on a U.S.-listed IPO in more than a year, according to Ipreo, a capital-markets data and...